Main points of investment
Years of deep ploughing of operator business resources, smart home and 5G communications services have become the main engine of growth.
At present, the smart family industry is in the tuyere of national policy, the company's smart family product matrix is rich and diverse, and its market share continues to rise. The 5G communications industry is also in the tuyere of national policy. The 14th five-year Plan for the Development of Digital economy clearly puts forward the goal of increasing the number of gigabit broadband users to 60 million by 2025, and the penetration rate of gigabit broadband users still has huge room for improvement. The company has been ploughing the business resources of operators for many years, and the orders for smart families and 5G communications services are more than 100 million, with strong performance certainty.
The reserve of high-quality copyright resources is rich, and mobile reading business is expected to sprout again. Mobile reading users are more willing to pay, and the market scale of the industry keeps growing under the epidemic. The operator channel market continues to empower the company's mobile reading business, the novel distribution platform continues to expand the market boundary, and the CPS distribution model lays a highly profitable foundation. The company has a large reserve of IP resources and high quality, and the digital copyright covers the whole industry chain. The derivative creation based on IP resources makes the company's mobile reading business expected to sprout again.
With the help of operators to cut into meta-universe business, virtual digital human focus layout. The company has the advantages of significant content operation and intelligent terminal, and has joined hands with many industry giants such as China Mobile Virtual reality, Darwin Robot, Unicom online, Jiangxi Unicom Vision, Xinhuanet, Kuaishou Technology Technology and other industry giants to promote the landing of metacosmos business. the key layout of virtual digital human has achieved multi-terminal coverage and entered the stage of large-scale commercial use.
Linkage communication operators tens of millions of site resources, sharing distributed energy storage cloud platform industry leader. Taking advantage of the policy of "strong allocation and energy storage", the company has taken the lead in building a distributed energy storage cloud platform with Zhejiang Yineng Energy. The company has natural advantages in tapping the resources of operators' communication sites. 100 million Energy has rich experience and successful application cases in new energy operation and energy storage, and the distributed energy storage cloud platform jointly built by both sides is expected to become a new profit growth pole.
Profit forecast: the company ploughs operator resources, smart home + 5G communications business builds a solid foundation, cloud universe, distributed energy storage cloud business is expected to open the ceiling of performance growth. We expect the company's 2022-2024 return net profit to be 322, 392, and 443 million yuan, respectively. The PE of the previous share price (September 5, 2022) is 11.1 times 15.2, 12.5, and is given a "prudent overweight" rating for the first time.
Risk tips: raw material price fluctuation risk, market competition intensification risk, product price decline or fluctuation risk, accounts receivable recovery risk, distributed energy storage cloud platform online lower than expected risk and so on.
